Top Corporate FDs Which Offer Interest Rates Up to 8.47%
Corporate Fixed Deposit (CFD) is an investment where you can deposit a sum of money in a company or financial institution for a predefined period at a fixed interest rate.
Investors seeking higher returns than bank fixed deposits may consider corporate fixed deposits carefully, analysing the risks. Corporate FDs have approved credit ratings by trusted agencies like CARE, ICRA, and CRISIL. These ratings help depositors assess the risk involved with their investments.
How You Can Choose Corporate Fixed Deposit:
As per a Securities website, here are some points to consider before choosing a corporate FDs:
1. Background of the Company: Analyse a company’s business viability by reviewing its financial statements and the Management Discussion and Analysis section.
2. Credit Rating: Select higher-rated corporate FDs based on their credit rating, which reflects the company’s underlying risk.
3. Repayment Records: A company’s repayment history plays an important role in determining its credit score and financial stability.
Top Corporate FD Interest Rates:
| Company Fixed Deposit Rates | ||||||
| Company Name | Credit Rating | Interest Rates (p.a.) | ||||
| Highest Rate Slab | Applicable tenure | 1-year | 3-year | 5-year | ||
| tenure | tenure | tenure | ||||
| Shriram Finance* | ICRA – AA+/Stable | 8.47 | 50 months; 5 years | 7.59% | 8.38% | 8.47% |
| IND AA+/Stable by India Ratings and Research | ||||||
| Mahindra Finance | CRISIL – AAA/Stable India Ratings – IND AAA/Stable | 8.1 | 3 years; 5 years | 7.50% | 8.10% | 8.10% |
| Manipal Housing Finance Syndicate Ltd. | ACUITE – ACUITE A | 8.25 | 1 year; 2 years; 3 years | 8.25% | 8.25% | 7.75% |
| PNB Housing Finance Ltd. | CRISIL – AA+/Stable | 7.75 | 36-47 months | 7.45% | 7.75% | 7.60% |
| CARE – AA+/Stable | ||||||
| Sundaram Home Finance | CRISIL – AAA/Stable | 7.9 | 4 years; 5 years | 7.45% | 7.75% | 7.90% |
| ICRA – AAA/Stable | ||||||
| Muthoot Capital Services Limited | CRISIL – A+/Stable | 8.38 | 5 years | 7.21% | 8.07% | 8.38% |
| ICICI Home Finance | CRISIL – AAA/Stable | 7.8 | 39 months; 45 months | 7.25% | 7.75% | 7.65% |
| ICRA – AAA/Stable | ||||||
| CARE – AAA/Stable | ||||||
| Can Fin Homes Ltd. | ICRA – AAA/Stable | 8 | 3 years | 6.50% | 8.00% | 6.75% |
| Bajaj Finance Limited | CRISIL – AAA/Stable | 8.4 | 42 months | 7.40% | 8.10% | 8.10% |
| ICRA – AAA/Stable | ||||||
| LIC Housing Finance Ltd. | CRISIL – AAA/Stable | 7.75 | 3 years; 5 years | 7.25% | 7.75% | 7.75% |
Risk Involved in Corporate FDs
Before investing in corporate FDs, an investor should very carefully assess the risks and monitor his investments regularly to ascertain the financial position of the company and changes in credit ratings.
As the SBI Securities website has notified, “Corporate FDs carry default risk in that the issuer could default due to a variety of reasons. In such cases, the recovery of the deposit can be quite a tough and long-drawn affair for the investor.”
